Talks on pensions

talks on pensions The recalculation of pensions for those who were part of special professional categories is almost done

The recalculation of pensions for those who were part of special professional categories is almost done, Labor Minister Marius Budai has told a private TV station, adding that over 76 thousand people have already received their recalculated pension, while the remaining 5,000 will receive their pension in the coming period, once the calculations are done. Minister Budai pointed out that in some cases the amounts differed as much as 210 euros. "We want to correct the entire public pension system, as soon as we start the final stage of the implementation of the new pension law, so as to create equity in the system, namely to have equal pensions for equal contributions", Marius Budai went on to say. 


The new law stipulates a gradual increase of the pension point value between 2019 and 2022, as well as the updating of millions of pension benefits paid at present. The new pension law also takes into account all salary-related rights that have been subject to taxation, such as indexations, global agreement, the 13th salary, extra time, bonuses, prizes and other types of bonuses. The new act also provides for including Ph.D. and M.A. programmes in calculating length of service, and the possibility to "buy" a maximum of 5 years of service. Under the new law, women who have completed the minimum contribution period of 15 years and have given birth to 3 children whom they have raised to the age of 16 will benefit from a 6-year reduction of the retirement age. Starting with the 4th child, an additional one-year reduction will be added. 


Survivors' benefits are maintained with a new amendment: aid for the surviving spouse amounting to 25% of the pension of the deceased spouse. The benefit will be taken into account when calculating the pension. The standard retirement age for men is 65 and for women 63. The minimum contribution period is 15 years for both women and men. Let us also note that starting September 1, the value of the pension point, against which pension benefits are calculated in Romania, was raised by 15%. The new value is some 266 euros, and is due to increase to 373 euros by 2020 and to 394 euros by 2021. Under the new law, the minimum guaranteed pension goes up from 640 to 704 lei. The minimum pension can be paid only to those who have completed the minimum contribution period of 15 years. Recent studies show Romania's population is reporting a sharp trend of aging and shrinking. Specialists say the public pension system is unsustainable in its current form and needs deep reform in order to avoid collapse in the coming period.

(Translated by V. Palcu)



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Publicat: 2019-09-30 13:55:00
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